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The ‘Graying’ of Salary Increases in India
The 2017 Budget and HR
Aon Hewitt acquires CoCubes, a hiring assessments company - Solidifies its market leadership position in India
Aon Hewitt Announces the Best Employers  India 2015 Awards
Aon Hewitt Projects a 10.6% Salary Increase for India Inc. in 2015, Similar to 2014 Outlook
Aon Hewitt Announces the Top Companies for Leaders India 2014
 

 

The ‘Graying’ of Salary Increases in India


Aon Hewitt’s annual Salary Increase Survey showcases the coming of age of compensation management in India. While majority of the industries projected a sub 10% increase – the business sentiment remains positive and optimistic.

New Delhi, Wed 22 Feb 2017 – Aon Hewitt, the global talent, retirement and health business of Aon plc (NYSE: AON), today announced the 21st edition of its annual Salary Increase Survey in India. The study, the largest and the most comprehensive of its kind in India, analysed data across 1000+ companies.

The survey projects a drop in pay increases to an average of 9.5% across industries. While it’s a marginal decrease from the 2016 spend, it reflects maturity that India Inc. has displayed amidst global and Indian economic and political events. This includes, and is not limited to Brexit, recent changes in the US government and the much talked about demonetization.

India Inc. has approached the ambiguity caused by these events with confidence and has displayed maturity instead of impulsive decision making. Anandorup Ghose, Partner at Aon Hewitt India, commented: “Political changes and economic headwinds have had an impact on business performance. However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance – quite literally a ‘graying’ of salary budgets for India”. 

It is noteworthy that sectors such as Life Sciences, Professional Services, Chemicals, Entertainment Media, Automotive and Consumer Products continue to project a double-digit salary increase for 2017. However they have taken a drop from their 2016 actual spends.


S.No

Industry

Proj Salary Increase (2017)

S.No

Industry

Proj Salary Increase (2017)

1

Consumer Internet Companies

12.4

11

Retail

9.4

2

Life Sciences

11.3

12

RE & Infrastructure

9.2

3

Professional Services

10.9

13

Hospitality & QSR

9.0

4

Chemicals

10.3

14

Telecommunications Services

8.9

5

Entertainment Media

10.3

15

Engineering Services

8.9

6

Automotive/Vehicle Manufacturing

10.3

16

Energy (Oil/Gas/Coal/Power)

8.9

7

Consumer Products

10.2

17

Metals

8.5

8

Engineering/Manufacturing

9.9

18

Financial Institutions

8.1

9

ITeS

9.9

19

Transportation/ Logistics/ Shipping Services

8.0

10

Hi Tech/Information Technology

9.7

20

Cement

7.6

While traditionally pay increases in India have not been affected by inflation rates, the significant drop in Consumer Price Index (CPI) over the last few quarters has also been a good opportunity for companies to manage their compensation budgets.

Increasing Focus on Talent and Merit
With tighter budgets, it has become imperative for firms to ensure that their ‘top talent’ is identified and remunerated accordingly. Research shows that the segment of population that features as ‘high performers’ have fallen to 7.5%, the lowest number recorded in the 21 years of the Salary Increase Survey in India. Consequently, the multiplier that India Inc. is offering these employees continues to be high. At 1.8 times, India is one of the highest differentiators across Asia.

The trend of investing in key talent continues. Firms are carving out high potential and hot skills along with high performers as their key talent segment. Anandorup Ghose commented: “The last year has shown organizations take a strong view towards performance differentiation and not only have bell curves become sharper, the pay differentiation between top and average performers has also increased.”

Attrition rate at its lowest for five years
The attrition rate in India was similar to 2015 at 16.4%. While attrition was contained at a broader level, key talent attrition increased from 7.3% in 2015 to 12.3% in 2016. While inequity of pay remains a concern, the key reasons cited by employees for voluntary attrition are role stagnation and limited growth opportunities.

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Media Contacts
Sushil Bhasin 
+91 9810068426
sushil.bhasin@aonhewitt.com


About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captive’s manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United
For more information on Aon Hewitt, please visit http://aonhewitt.co.in/.

 
 

The 2017 Budget and HR

UnionBudget-Edited-(1).png

Author: Aon Hewitt Knowledge Center

The Hon'ble Finance Minister, Mr. Arun Jaitley, presented one of the most anticipated union budgets of recent times yesterday. The impact of the unprecedented “demonetization” efforts of the government, the downgrading of the IMF’s India growth outlook and continued challenges with the ease of doing business in India had combined to make the presentation of this year’s budget a much looked forward to event.
 
Did the Finance Minister deliver? The markets certainly seemed to think so- the Nifty ended the day 155.10 points up, the biggest budget day gain in the last 12 years. The Sensex too ended 485 points up.
 
Here is Aon Hewitt’s take on the HR/talent related implications.
 
Three things that we think went well:

1. Emphasis on skill development initiatives
The enhanced budget of INR 4,000 crores for the Skill India initiative to touch 3.5 crore youth is testament to a clear focus on ensuring job creation and creating a specialized and skilled workforce.

On the skill agenda, setting up a National Testing Agency as an autonomous and self-sustained premier testing body to conduct all entrance exams for higher education will ensure a standardized skill mapping across various sectors. A common assessment platform and creation of a common agency will be key for millennials to get an equal and fair opportunity to become a part of the higher education system.

2. Rewards for honest, low income tax payers
Employees with less than INR 5 lakhs per annum income could effectively pay either zero tax or 50% of their existing tax burden. This move will increase disposable incomes for the low income category.
Given that nearly 70% of the tax payers in the country have incomes less than INR 5 lakhs per annum, this represents a significant gain for these honest tax payers.

3. Flexibility with the NPS
Employees investing in the National Pension System (NPS) through their company will now be allowed to withdraw up to 25% of their contribution without having to pay tax. By including this withdrawal flexibility exempt from tax , the government is trying to bring closer NPS to the EPF. Since NPS is a voluntary scheme, introducing features such as this  will make it more attractive to the employees and induce them to enroll for the scheme.

While the change in NPS for this budget  is not substantial;, what is significant is that in the last three to four  years, the government has brought in many changes to the scheme’ thereby increasing the subscriber base YOY by 100% plus.

Three things that could have been done differently:

1. Surcharge on income tax for incomes between INR 50 lacs and INR 1 crore
People with an annual taxable income between INR 50 lacs and INR 1 crore will now have to pay a surcharge of 10%.While many will see it as “they earn enough money and should pay more taxes”, this is a move that will disappoint those who fall in this category, given that increasing the tax base doesn’t seem to be receiving much focus. The surcharge represents a significant increase in the annual tax burden. Additionally, effective pay rises for this category for this year will be muted.

2. Not enough for IT-ITeS sector
While the focus on digital payments was as per the expectations in the budget, the expectations of the IT sector remain largely unmet. Given the environment in the US and the proposed changes to the H1B regime, the IT sector would have wanted more. The technology sector’s request for support and incentives for R&D have also been ignored.
We expect people related spends on salary, benefits and other employee initiatives to therefore be muted in the near future.
 
3. Not enough done on corporate tax
The corporate tax rate has been cut from 30% to 25% i.e., for small companies but not for the large ones. A big part of the demand for a tax rate cut was to try and level the playing field for Indian and Asian companies to increase competitiveness and it’s the big companies that compete externally. The lack of a rate cut for the larger companies will also mean that they will have less leeway for spends on employee related programs.

Our overall view - Demonetization and the proposed introduction of GST are landmark moves that should have a long lasting impact on the economy. In this context, a budget that builds on consistency in policy making, that the government has been displaying, is a step in the right direction.
________________________________________________________________________________

Aon Hewitt acquires CoCubes, a hiring assessments company - Solidifies its market leadership position in India

Location: Gurgaon
Aon Hewitt (AON: NYSE), the global talent, retirement and health solutions business of Aon Plc, today announced its acquisition of CoCubes, a leading hiring assessment company based in India. With this transaction, Aon Hewitt adds two million assessments to its existing global portfolio of 20 million assessments spread across 164 countries.

Aon Hewitt, one of the earliest solution providers in selection and assessment, helps organizations make better hiring decisions and improve performance by predicting the success of their potential and current employees. CoCubes, on the other hand connects colleges, students and corporates using assessments; to create a seamless entry-level hiring ecosystem.

Sandeep Chaudhary, CEO, India Consulting, Aon Hewitt, shared, “We were actively looking for an organization that focuses on employability assessments. CoCubes stood out for us as a successful startup with its profitable growth, resilient leadership team and an innovative technology platform. With its strong client standing and value-aligned leadership, CoCubes is clearly our partner of choice to augment our assessment solutions in India and across other markets in Asia Pacific.”

“With the acquisition of CoCubes, we will now be a one-stop-shop for entry-level hiring assessment solutions. CoCubes complements our specialization in behavioral and leadership assessments with technical and vocational assessments, in addition to its innovative proctoring solutions. By solving the employability challenge with educational institutions and sector skill councils, Aon Hewitt is now geared to fulfill the entry level hiring needs for corporate clients.” said Nitin Sethi, Partner and Chief Commercial Officer, India Consulting, Aon Hewitt.

The CoCubes founders, Harpreet Singh and Vibhore Goyal, will continue to lead the business as a separate practice line and will join Aon Hewitt’s Talent, Rewards and Performance (TRP) vertical, reporting to Nitin Sethi.  

Harpreet Singh, Co-Founder and CEO, CoCubes said, “It started nine years ago as an idea to provide everyone an equal opportunity at building a career; we are delighted to move to the next level in our start up journey. With Aon Hewitt’s market leadership position in HR consulting, we are confident of accelerating our growth to emerge as market leaders in the assessment space.”

Vibhore Goyal, Co-Founder and CTO, CoCubes added, “As we start a new journey, it is extremely fulfilling to see what we have created so far. We are now firmly positioned to bridge the gap between sourcing and filtration with a holistic entry level hiring assessment solution.”

About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement, and health solutions. Aon Hewitt is the global leader in human resource solutions, with over 35,000 professionals in 90 countries serving more than 20,000 clients worldwide across 100+ solutions. For more information on Aon Hewitt, please visit http://aonhewitt.co.in 

About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and 
reinsurance brokerage, and human resources solutions and outsourcing services. Through its more 
than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com

About CoCubes
CoCubes aims to ensure that everyone in India gets an equal opportunity to build a career. Among the pioneers of employability assessments in India, CoCubes conducts over two million assessments for 600 clients across 350 cities. CoCubes is backed by Ojas Venture Partners (http://www.ojasventures.com/) who were the only institutional investors in the company. For more information on CoCubes, please visit www.cocubes.com
 

 

Aon Hewitt Announces the Best Employers – India 2015 Awards

It's indisputable: Best Employers raise the bar in engaging employees in India

Apr 20, 2015

Mumbai, Monday 20 April 2015 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), announced its list of the Best Employers – India 2015 in an Awards Ceremony & Learning Conference held in Mumbai this past Friday.

Marking 15 years of the Aon Hewitt Best Employers program in India, the event covered key insights of talent and business evolution and trends observed during the past 15 years.

This year's study saw the overall engagement score for Best Employers in India increase by 7 percentage points over last year to a whopping 83%. The market on the other hand remained stagnant with an increase of only 1 percentage point from last year at 66%.

The hospitality industry saw the highest average engagement score amongst all industries at 79%. Other industries with high engagement scores included Telecom and Media (72%) and Healthcare Equipment and Services (74%).

Out of the 99% of participating companies that measured Engagement, this year's research highlighted some salient trends:

  • Rewards & Recognition, Brand and Career Opportunities emerged as the top three areas where employees are demanding improvement from their employers
  • Over 65% of Indian CEOs highlighted rising salaries and critical skills shortage as key concerns for their organizations
  • Gen Y Engagement for Best Employers was at 85% (an increase of 14 percentage points from last year) and Women Engagement for Best Employers was at 82%  (an increase of 6 percentage points from last year)
  • 6 in 10 Best Employers had direct reporting of the HR head to their CEO as compared to only 3 in 10 average organizations

"The 2015 edition of the Best Employers program has helped us identify what the future steps for organizations who want to engage their employees should be. We have looked back in history, and charted the path India Inc. has taken over the past 15 years," said Sandeep Chaudhary, CEO for Aon Hewitt Consulting in India. "A key finding that has emerged is that Best Employers are not always the big and prominent employers One third of Best Employers have been small and emerging companies where the differentiator is not always about the most innovative practices, it is a lot about doing small things consistently."

The following organizations were recognized as Best Employers in Indian 2015 (alphabetically):

Aon Hewitt Best Employer – India2015 Awards Company Name (in alphabetical order)
Best Employer India 2015 Bajaj Finance Limited
Best Employer India 2015 Bharti Infratel
Best Employer India 2015 Blue Dart Express Limited
Best Employer India 2015 DHL Express India Pvt. Ltd.
Best Employer India 2015 Franklin Templeton Asset Management (India) Pvt. Ltd.
Best Employer India 2015 Godrej Agrovet Limited
Best Employer India 2015 Godrej Consumer Products Limited
Best Employer India 2015 Marriott Hotels India Pvt. Ltd.
Best Employer India 2015 Roche Diagnostics India Pvt. Ltd.  
Best Employer India 2015 Starwood Hotels & Resorts India Private Limited
Best Employer India 2015 Whirlpool of India Limited
Best Employer India 2015 Commitment to Engagement Bharti Infratel
Best Employer India 2015 for Gen Y DHL Express India Pvt. Ltd.
Best Employer India 2015 for Women Starwood Hotels & Resorts India Private Limited
Aon Hewitt Voice of Employee Award Marriott Hotels India Pvt. Ltd.

"In the current complex and uncertain environment, employee engagement can be leveraged as a tool for driving culture and enabling change. Highly engaged employees are the bed rock of a successful organization, especially during times of change. Given this, it is encouraging to see organizations are focusing on measuring and analyzing employee needs and engagement levels", said Tarandeep Singh, Partner and Engagement Lead for Aon Hewitt Consulting in India.

Apart from insights on the impact of Engagement on business results, a number of other interesting data points came out in this year's Best Employers – India 2015 research:

Business and People Challenges

  • Best Employers filled 32% more openings internally compared to market level.
  • Best Employers achieve 40% higher growth in revenue than market average.
  • Best Employers attain 25% higher growth in profits than market average.

Compelling Employer Brand

  • Overall 54% of organizations have a clearly defined employer brand. However, only 24% of CEOs and HR are aligned on its nature.
  • 82% of employees at Best Employers believe their organization delivers on promises, compared to only 64% of employees at participating organizations.
  • 88% of employees at Best Employers would recommend their company, compared to 74% at a participating company.

Effective Leadership

  • 82% of employees at Best Employers believe that senior leadership treat them as the organization's most valued asset, compared to only 63% of employees at participating organizations.
  • 82% Best Employers have rotational assignments program for developing their leaders compared to 63% participating organizations.
  • 73% Best Employers have structured succession planning, compared to just 49% participating organizations

High Performance Culture

  • Only 31% of organizations provide coaching to their managers on providing career advice to their teams, versus 45% at Best Employers.
  • Only 53% of employees feel they receive appropriate recognition beyond pay and benefits for their contribution, versus 73% at Best Employers.
  • 83% of employees at Best Employers believe their organization offers excellent career opportunities to strong performers, compared to only 64% of employees at participating organizations.

While the Best Employers study recognizes organizations that display standards of excellence, the journey to get there is one that Aon Hewitt recommends for every organization to embark upon.

"For organizations that don't make it to the Best Employers list, but are aspiring to become Best Employers, we want to reinforce that this is a journey. Becoming a Best Employer doesn't happen overnight, said Sushil Bhasin, Project Manager of the Best Employers Program for Aon Hewitt in India.  "It is possible for everyone to become a Best Employer, if you've articulated the destination you want to head to and have planned your journey wisely."

Participation in the program brings a wide range of benefits for organizations, such as finding out how employees perceive and rate their employer, the reasons why they are attracted to certain employer brands, and the type of organizational culture they value sufficiently to "stay and strive". The study also provides a benchmark against company competitors in the market. Participating organizations gain access to Aon Hewitt's latest market research insights, along with the best and most innovative people practices of Best Employers.

About Aon Hewitt's Best Employers Study

The Aon Hewitt Best Employers program is the most comprehensive study of its kind in Asia Pacific. It is run in 12 markets: China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Australia and New Zealand. The study's research methodology involves a rigorous process, conducted over a nine-month period that culminates in a solid, credible list of Best Employers.

Being recognized as an Aon Hewitt Best Employer means that:

  • The organization inspires strong commitment and superior performance from its people;
  • It drives business results through effective people practices; and,
  • It manages its business in ways that build long-term success and sustainability.

While the Best Employers study recognizes organizations that display standards of excellence, the journey to get there is one that Aon Hewitt recommends for every organization to embark upon.

Participation in the program brings a wide range of benefits for organizations, such as finding out how employees perceive and rate their employer, the reasons why they are attracted to certain employer brands, and the type of organizational culture they value sufficiently to "stay and strive". The study also provides a benchmark against company competitors in the market. Participating organizations gain access to Aon Hewitt's latest market research insights, along with the best and most innovative people practices of Best Employers.

To find out more about the Aon Hewitt Best Employers Asia 2015 Study, please visit http://www.bestemployersasia.com

To find out more about the Aon Hewitt Best Employers – India 2015 Awards or to inquire about the next edition of the Best Employers program starting in soon, please contact Sushil Bhasin, Best Employers India Project Manager at sushil.bhasin@aonhewitt.com

 

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About Top Companies for Leaders
Backed by extensive data gathered through surveys, documents, and interviews, and by rigorous analysis, the Aon Hewitt 2014 Top Companies for Leaders Study is the most comprehensive, global research on leadership in the market, examining the link between leadership practices and business results. This study explores how companies assess, select, develop, and reward leaders, and examines the execution of leadership practices, as well as the strategy that guides it. To learn more about this study, please visit www.aon.com/india

Initiated in 2001, the Aon Hewitt Top Companies for Leaders is one of the most comprehensive longitudinal studies of leadership and leadership practices around the globe. The study, recognized for its global scope and research rigor, attracts progressive companies that seek insights on leader building and how the best develop and sustain their leadership pipeline. 

About Aon Hewitt
Aon Hewitt is a global human resource consulting and outsourcing business of Aon Corporation (NYSE:AON). Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt in India, please visit www.aon.com/india.

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Aon Hewitt Projects a 10.6% Salary Increase for India Inc. in 2015, Similar to 2014 Outlook

7 out of 10 Organizations Expect an Improved Business Outlook in 2015

Feb 19, 2015

New Delhi, Thurs 19 Feb 2015 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), today announced the 19th edition of its Annual Salary Increase Survey in India. The study, the largest of its kind in India, analysed data from more than 580 companies. The results reflect a positive yet cautious sentiment in India Inc. towards salary increases.

Anandorup Ghose, Rewards Consulting Practice Leader at Aon Hewitt India, commented: "On the back of improving business confidence, a stable government and moderating inflation there is a significant improvement in business confidence across companies, However this confidence is not reflecting in salaries., The projected salary increase number shows a subtle improvement over salary increases in the last 3 years. Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases."

Sectors such as Life Sciences, Engineering Services, Chemicals and Media are projecting a higher increase than the market average. These industries have also consistently led the salary increase numbers since 2012. The overall positive sentiment in the economy has impacted the Real Estate / Infrastructure sector significantly. The sector has moved up many places to lead the salary increase pack this year. The IT and Business Process Management sector has made a comeback, for the first time in three consecutive years; these industries have projected an average salary increase higher than India Inc. On the other hand, services industries like Retail, Financial Services, and Hospitality represent the lower end of salary increase projections.

Highest & Lowest Salary Increase Projections for 2015
Lead Industries 2015 Projections Lag Industries 2015 Projections
Real Estate  Infrastructure 12.2 Telecommunications 9.9
Life Sciences 12 Transport 9.9
Media 11.8 Hospitality 9.8
Chemicals 10.8 Retail 9.5
ITeS and Hi Tech 10.7 Financial Services 9.4

Source: Aon Hewitt Salary Increase Survey 201415

Other Emerging Trends from the Study

The survey highlighted that almost 70% of the respondents believe that there will be improvement in the business outlook. About half of all companies feel that positive business sentiment and increasing pay budgets in their competitive market are driving factors in their decision to increase salary projections from earlier years.

With changing sentiments, employee expectations have also gone up manifold. The study results show that organizations however are managing these higher expectations carefully and are not getting swayed by it. The focus on performance differentiation is far higher with a larger proportion of budgets being allocated to higher performers.  Data this year shows that across the board top performers are expected to get 1.6 times the salary increase awarded to average performers. This differentiation is even higher in most service industries such as Banking and Financial Services and Insurance (BFSI), ITeS and Telecom as well as other industries like Fast Moving Consumer Goods/Fast Moving Consumer Durables (FMCG/ FMCD), Pharma etc.

Additionally, in the last five years, the percentage of employees with top performance rating has dropped by close to 30%, implying that organizations are not hesitating to differentiate sharply on the basis of performance and are allocating the share of the total increase budget accordingly.

Top/Senior Management will see approximately a fourth of their total compensation being variable and even the bottom of the pyramid, at entry levels roles, more than 12% of compensation can be expected to be paid through performance-linked pay. There is a steady trend towards greater performance-based pay and it indicates a shift in overall pay philosophy across Indian companies.

Anandorup Ghose commented: "It's heartening to see that even in good years India Inc. is showing greater focus towards driving performance-based differentiation in pay budgets. This will enable companies to manage their compensation costs much better than they have been in the past. We are also seeing an increase in overall employee benefits costs for companies; there is a marginal but definite shift in the level of benefits being offered to employees".

India Inc. attrition rates in 2014 continued to be broadly at par with 2013 at 18.1%, but key talent attrition has witnessed a 31% jump. Key talent attrition in 2014 registered at 5.9% as compared to 4.5% in 2013. Increasingly organisations are developing separate retention plans and policies for their top talent. While rewards continues as a retention tool to ring fence top talent, programs around on leadership opportunities and coaching, overseas assignments, fast track programs for hi - potentials are fast gaining prominence

With changing demographics and increased focus on employee wellness, benefits are gaining significant momentum. Of the 500+ organisations that were surveyed, 76% of the firm has indicated an increase in their benefits budget. Increase in salary linked benefits (retirals), introduction of new benefits and change in the number of people availing benefits are some of the reasons for this increased budget.

 

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About Top Companies for Leaders
Backed by extensive data gathered through surveys, documents, and interviews, and by rigorous analysis, the Aon Hewitt 2014 Top Companies for Leaders Study is the most comprehensive, global research on leadership in the market, examining the link between leadership practices and business results. This study explores how companies assess, select, develop, and reward leaders, and examines the execution of leadership practices, as well as the strategy that guides it. To learn more about this study, please visit www.aon.com/india

Initiated in 2001, the Aon Hewitt Top Companies for Leaders is one of the most comprehensive longitudinal studies of leadership and leadership practices around the globe. The study, recognized for its global scope and research rigor, attracts progressive companies that seek insights on leader building and how the best develop and sustain their leadership pipeline. 

About Aon Hewitt
Aon Hewitt is a global human resource consulting and outsourcing business of Aon Corporation (NYSE:AON). Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt in India, please visit www.aon.com/india.

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Aon Hewitt Announces the Top Companies for Leaders India 2014

Hindustan Unilever, ICICI and PepsiCo India feature top the India list

Mumbai, 25 September 2014

Aon (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing solutions, announced the results for the Top Companies for Leaders India 2014 study. Hindustan Unilever was identified on top of the list of Top Companies while PepsiCo India was awarded the first place under the Top MNCs for Leaders category (full list below).

The Aon Hewitt Top Companies for Leaders study is the most comprehensive global and Asia Pacific research on leadership. The study examines the link between leadership practices and financial results. Since its inception in 2001, the study has explored and evaluated leadership practices followed by organizations at the global and Asia Pacific level.

This year, for the first time, Aon Hewitt conducted an Indian edition of the leadership study with a focus on identifying leadership best practices, specific to the country.

Sandeep Chaudhary, CEO, Aon Hewitt India Consulting said, "The improving business outlook in the country necessitates companies to have leaders who can drive business results. The 2014 study reveals that Top Companies have differentiated themselves from others by investing in leadership practices that drive business performance, enable innovation, and ensure sustainable growth."

  India's Top Companies For Leaders:
  • Hindustan Unilever Limited
  • ICICI Bank Ltd.
  • Mahindra Group
  • Marico Limited
  India's Top MNCs For Leaders:
  • PepsiCo India Holdings Pvt. Ltd.
  • Vodafone India Limited
  Special Recognition for "forward looking & global mindset"
  • Godrej Industries Limited and Associated Companies (GILAC)

Insights from the study reveal that the key differentiation between Top Companies and others is the ability to translate leadership practices into tangible business outcomes. Top Companies have an intensive focus on accountability and execution, building an engaged and inclusive talent pool and a high focus on wholesome development of individuals as well as the community.

An expert panel of independent judges convened to select the winners of the Top Companies for Leaders 2014 India study. Winning criteria included strength of leadership practices, illustrations of leader development, alignment of business and leadership strategy, business performance, and company reputation.

The key insights from the study are:

  • Action and results matter, not just intent – Top Companies drive their leadership practices with a high clarity of purpose and extensively measure their effectiveness. The study revealed that, a 100 percent of Top Companies formally evaluate the effectiveness of leadership development programs, as against 70 percent other companies.
  • Leadership needs to engage, not just manage – Leaders in Top Companies are responsible for driving engagement not just of their immediate teams, but of the entire organization. We found that a 100 percent of Top Companies strongly believed that their leaders actively drive interventions in response to employee engagement survey results, as against 47 percent other companies.
  • It's inclusion, not just diversity – Top Companies maintain strong focus on de-cloning the leadership, enable talent mobility, and mirror their teams with the customers, and make diversity happen through inclusion. In these companies, leaders are held accountable to ensure successful inclusion of new leaders hired from outside the organization, to ensure the purpose of diversity is met with.
  • Developing leaders, not followers – In Top Companies, one of the key responsibilities of leaders is to grow future leaders and are responsible for the development of their talent pool.
  • Leadership needs to be constantly assessed, not assumed – Top Companies lay explicit focus in ensuring that values are integrated with other organizational systems, such that they help ensure sustainable growth. To enable this further, they maintain a strong focus on ‘Selection for Fit'.
  • Responsibilities are holistic, not limited – In Top Companies, leaders are significantly responsible for achieving the common organizational goals, in addition to their own business or functional goals. They are also addressing dependencies and risks to sustainable growth, by involving high potentials in critical organizational projects.

Radhika Gopalkrishnan, Partner and Practice Leader – Leadership Consulting, Aon Hewitt India said, The adoption of formal leadership practices is on the rise among both multinationals and home grown companies in India. However, Top Companies distinguish themselves by better aligning leadership strategy with business strategy, constantly measuring the effectiveness of these practices, and assigning greater accountabilities to achieve the desired outcome. The Top Companies are hence more successful in building and retaining leaders and high potentials, engaging leaders and employees, and achieving the organizational goals.

The 2014 edition of the study was conducted in partnership with The Economic Times, India's leading business newspaper, and was supported by the L&OD Roundtable.

 

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About Top Companies for Leaders
Backed by extensive data gathered through surveys, documents, and interviews, and by rigorous analysis, the Aon Hewitt 2014 Top Companies for Leaders Study is the most comprehensive, global research on leadership in the market, examining the link between leadership practices and business results. This study explores how companies assess, select, develop, and reward leaders, and examines the execution of leadership practices, as well as the strategy that guides it. To learn more about this study, please visit www.aon.com/india

Initiated in 2001, the Aon Hewitt Top Companies for Leaders is one of the most comprehensive longitudinal studies of leadership and leadership practices around the globe. The study, recognized for its global scope and research rigor, attracts progressive companies that seek insights on leader building and how the best develop and sustain their leadership pipeline. 

About Aon Hewitt
Aon Hewitt is a global human resource consulting and outsourcing business of Aon Corporation (NYSE:AON). Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt in India, please visit www.aon.com/india.

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